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Saturday, September 21st, 2019

Asian markets lower, rattled by rising tensions in Koreas

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by April 14, 2017 General

Asian stocks were lower on Friday as investors fretted over rising geopolitical tensions and the situation on the Korean Peninsula. Many markets were closed for public holidays.

KEEPING SCORE: Tokyo’s Nikkei 225 fell 0.4 percent to 18,356.82 and South Korea’s Kospi slipped 0.6 percent to 2,136.69. Shanghai Composite index dropped 0.4 percent to 3,261.64. Hong Kong markets were closed and so were markets in Singapore and other Southeast Asian countries.

NORTH KOREA: Analysts said investors were seeking safe havens on concern North Korea may be planning a nuclear test. As it prepares for the 105th anniversary of the birth of its founder Kim Il Sung on Saturday, North Korean has intensified its rhetoric, warning of strong retaliation against any aggression as U.S.-South Korea hold military exercises.

ANALYST’S VIEWPOINT: “Geopolitics seemed to dominate over the past week with the ramifications of the U.S.’ missile strike on Syria still reverberating and tensions around North Korea steadily building,” Shane Oliver, chief economist at AMP Capital, said in a commentary. “The issues around Syria are likely to settle down assuming U.S. involvement does not escalate, but North Korea is more risky.”

WALL STREET: U.S. stocks finished lower for the third straight day on Thursday as energy stocks led the decline. The Standard & Poor’s 500 index slid 0.7 percent to 2,328.95. The Dow Jones industrial average fell 0.7 percent to 20,453.25. The Nasdaq composite index lost 0.5 percent to 5,805.15. U.S. markets will be closed Friday for the Good Friday holiday.

OIL: On Friday, the New York Mercantile Exchange and the London Metal Exchange were closed. On Thursday, benchmark U.S. crude rose 7 cents to close at $53.18 per barrel in New York. Brent crude, used to price international oils, added 3 cents to close at $55.89 per barrel in London.

CURRENCIES: The dollar bounced back after weakening against major currencies following President Donald Trump’s comment in an interview with The Wall Street Journal that the dollar was “getting too strong.” The dollar strengthened to 109.13 yen from 109.12 yen. The euro rose slightly to $1.0618 from $1.0616.

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